SYNCMOLD - Interim / Quarterly Report 2023

Syncmold Enterprise Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2023 and 2022 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Syncmold Enterprise Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Syncmold Enterprise Corporation and its subsidiaries (collectively, the “Group”) as of March 31, 2023 and 2022, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2023 and 2022, the combined total assets of these non-significant subsidiaries were NT$3,008,391 thousand and NT$4,279,523 thousand, respectively, representing 26.76% and 34.53%, respectively, of the consolidated total assets, and the combined total liabilities of these subsidiaries were NT$1,320,125 thousand and NT$1,748,472 thousand, respectively, representing 24.87% and 28.44%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2023 and 2022, the amounts of combined comprehensive income of these subsidiaries were NT$(6,484) thousand and NT$(7,735) thousand, respectively, representing (12.12%) and (2.88%), respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 12 to the consolidated financial statements, the amounts of investments accounted for using the equity method as of March 31, 2023 and 2022 were NT$178,301 thousand and NT$177,569 thousand, respectively; for the three months ended March 31, 2023 and 2022, the share of profit of associates of NT$10,212 thousand and NT$5,511 thousand, respectively, was calculated based on financial statements which have not been reviewed.

The disclosure information in Note 30 about the aforementioned non-significant subsidiaries and associates was based on the unreviewed financial statements of the subsidiaries and associates for the same reporting periods as those of the Group.

Qualified Conclusion

Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and associates accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Chih-Yuan Chen and Yao-Ling Huang.

Deloitte & Touche Taipei, Taiwan Republic of China

May 8, 2023

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at amortized cost - current (Notes 8 and 28) Notes receivable Trade receivables, net (Note 9) Inventories (Note 10) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 7 and 18) Financial assets at amortized cost - non-current (Note 8) Investments accounted for using the equity method (Note 12) Property, plant and equipment (Notes 13, 27 and 28) Right-of-use assets (Notes 14 and 27) Intangible assets (Notes 15 and 27) Goodwill (Note 16) Deferred tax assets (Notes 4 and 23) Prepayments for equipment Refundable deposits Net defined benefit assets (Notes 4 and 20) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 17 and 28) Notes payable and trade payables Other payables (Notes 19 and 27) Current tax liabilities (Note 23) Lease liabilities - current (Notes 14 and 27) Current portion of long-term borrowings (Notes 17 and 28) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 18) Long-term borrowings (Notes 17 and 28) Deferred tax liabilities (Notes 4 and 23) Lease liabilities - non-current (Notes 14 and 27) Net defined benefit liabilities (Notes 4 and 20) Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION Ordinary shares Capital collected in advance Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income Total other equity Total equity attributable to owners of the Corporation NON-CONTROLLING INTERESTS Total equity TOTAL		March 31, 2023 (Reviewed) Amount % $ 3,764,111 34 452,885 4 341,206 3 126,834 1 1,892,722 17 807,791 7 364,541 3 7,750,090 69 65,809 1 3,281 - 178,301 2 2,137,694 19 540,355 5 55,656 - 324,597 3 122,491 1 21,790 - 34,931 - 6,416 - 368 - 3,491,689 31 $ 11,241,779 100 $ 1,477,098 13 1,331,965 12 495,025 5 100,841 1 155,124 1 16,468 - 11,848 - 3,588,369 32 1,181,714 10 173,670 2 152,288 1 187,733 2 6,403 - 883 - 17,063 - 1,719,754 15 5,308,123 47 1,237,242 11 16 - 2,361,889 21 1,026,386 9 687,191 6 791,235 7 2,504,812 22 (496,549) (4) 2,451 - (494,098) (4) 5,609,861 50 323,795 3 5,933,656 53 $ 11,241,779 100		December 31, 2022 (Audited) Amount % $ 3,510,365 31 704,121 6 238,110 2 181,328 2 1,969,799 17 907,985 8 369,328 3 7,881,036 69 63,490 1 3,272 - 168,088 1 2,181,140 19 583,556 5 59,246 1 324,597 3 107,155 1 25,317 - 43,812 - 6,416 - 223 - 3,566,312 31 $ 11,447,348 100 $ 1,477,363 13 1,466,764 13 553,842 5 81,428 1 158,482 1 16,476 - 33,212 - 3,787,567 33 1,178,724 10 177,771 2 158,517 2 238,775 2 6,998 - 933 - 16,734 - 1,778,452 16 5,566,019 49 1,237,242 11 - - 2,361,070 21 1,026,386 9 687,191 6 753,104 6 2,466,681 21 (514,593) (5) (4,203) - (518,796) (5) 5,546,197 48 335,132 3 5,881,329 51 $ 11,447,348 100		March 31, 2022 (Reviewed)
						Amount % $ 2,229,900 18 150,781 1 259,071 2 377,705 3 3,669,101 30 1,368,736 11 455,708 4 8,511,002 69 63,000 1 2,290 - 177,569 1 2,262,460 18 769,357 6 56,885 1 324,597 3 123,564 1 53,926 - 44,130 - 2,898 - 1,114 - 3,881,790 31 $ 12,392,792 100 $ 905,432 7 2,470,751 20 417,438 3 178,271 2 204,043 2 16,555 - 20,046 - 4,212,536 34 1,169,344 9 190,043 2 179,110 2 369,655 3 10,129 - 1,226 - 15,132 - 1,934,639 16 6,147,175 50 1,237,242 10 - - 2,769,360 23 1,001,175 8 635,615 5 731,832 6 2,368,622 19 (467,360) (4) 8,785 - (458,575) (4) 5,916,649 48 328,968 2 6,245,617 50 $ 12,392,792 100

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 8, 2023)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OPERATING REVENUE OPERATING COSTS (Notes 10 and 22) GROSS PROFIT OPERATING EXPENSES (Notes 9, 22 and 27) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 14) Other gains and losses Interest income Net foreign exchange (loss) gain (Note 29) Net gain on financial assets at fair value through profit or loss (Note 7) Share of profit of associates (Note 12) Interest expenses (Note 27) Total non-operating income and expenses PROFIT BEFORE INCOME TAX FROM OPERATIONS INCOME TAX EXPENSE (Notes 4 and 23) NET PROFIT FOR THE PERIOD		For the Three Months	For the Three Months	Ended March 31
		2023 Amount % $ 1,830,264 100 1,519,525 83 310,739 17 60,503 3 164,030 9 44,832 3 525 - 269,890 15 40,849 2 4,892 - (6,786) - 19,106 1 (34,693) (2) 26,603 2 2,908 - (14,894) (1) (2,864) - 37,985 2 11,384 1 26,601 1		2022
				Amount % $ 2,765,060 100 2,398,165 87 366,895 13 83,336 3 185,089 6 46,966 2 8 - 315,399 11 51,496 2 5,347 - (2,450) - 3,953 - 7,917 - 1,165 - 8,097 - (12,006) - 12,023 - 63,519 2 35,172 1 28,347 1 (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss: Share of other comprehensive income (loss) of subsidiaries accounted for using the equity method Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Other comprehensive income for the period TOTAL COMPREHENSIVE INCOME FOR THE PERIOD NET PROFIT ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests EARNINGS PER SHARE (Note 24) Basic Diluted		For the Three Months	For the Three Months	Ended March 31
		2023 Amount % $ 7,304 1 19,601 1 26,905 2 $ 53,506 3 $ 37,481 2 (10,880) (1) $ 26,601 1 $ 62,829 3 (9,323) - $ 53,506 3 $ 0.30 $ 0.28		2022
				Amount % $ (2,586) - 242,555 9 239,969 9 $ 268,316 10 $ 30,921 1 (2,574) - $ 28,347 1 $ 259,536 10 8,780 - $ 268,316 10 $ 0.25 $ 0.24

		$		$
		$		$
		$		$
		$		$
		$		$

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 8, 2023)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Equity Attributable to Owners of the Corporation(Notes 18 and 21)	Equity Attributable to Owners of the Corporation(Notes 18 and 21)	Equity Attributable to Owners of the Corporation(Notes 18 and 21)
Ordinary Share Capital Collected in Advance Capital Surplus $ 1,237,242 $ - $ 2,769,331 - - 29 - - - - - - - - - $ 1,237,242 $ - $ 2,769,360 $ 1,237,242 $ - $ 2,361,070 - - 15 - - - - - - - - - - - 721 - 16 83 - - - $ 1,237,242 $ 16 $ 2,361,889	Retained Earnings	Total $ 2,337,701 - 30,921 - 30,921 $ 2,368,622 $ 2,466,681 - 37,481 - 37,481 - - 650 $ 2,504,812	Other Equity	Total Other Equity $ (687,190) - - 228,615 228,615 $ (458,575) $ (518,796) - - 25,348 25,348 - - (650) $ (494,098)
			Exchange Differences on Translating of the Financial Statements of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (698,561) $ 11,371 - - - - 231,201 (2,586) 231,201 (2,586) $ (467,360) $ 8,785 $ (514,593) $ (4,203) - - - - 18,044 7,304 18,044 7,304 - - - - - (650) $ (496,549) $ 2,451
	Legal Reserve Special Reserve Unappropriated Earnings $ 1,001,175 $ 635,615 $ 700,911 - - - - - 30,921 - - - - - 30,921 $ 1,001,175 $ 635,615 $ 731,832 $ 1,026,386 $ 687,191 $ 753,104 - - - - - 37,481 - - - - - 37,481 - - - - - - - - 650 $ 1,026,386 $ 687,191 $ 791,235

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 8, 2023)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss Net gain on financial assets at fair value through profit or loss Interest expenses Interest income Share of profit of associates Loss on disposal of property, plant and equipment Loss on disposal of intangible assets Write-downs of inventories Net loss (gain) on unrealized foreign currency exchange Gain on lease modification Changes in operating assets and liabilities Notes receivable Trade receivables Inventories Other current assets Other non-current assets Notes payable and trade payables Other payables Other current liabilities Net defined benefit assets and liabilities Other non-current liabilities Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Payments for intangible assets		For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 37,985 108,230 6,085 525 (26,603) 14,894 (19,106) (2,908) 6,018 13 215 19,145 (1,108) 55,686 103,928 103,169 28,143 (144) (184,389) (54,004) (28,887) (596) 270 166,561 (10,770) (32,126) 123,665 (101,892) - (221,830) 500,618 (15,892) 2,293 9,077 (2,398)	2022 $ 63,519 113,579 5,824 8 (1,165) 12,006 (3,953) (8,097) 739 29 28,025 (18,314) - (6,755) (37,922) (64,141) 9,947 124 116,841 (5,113) 13,506 (1,547) 225 217,365 (12,003) (35,172) 170,190 - 88,153 (330,578) 332,620 (79,886) 348 (1,198) (8,104) (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Increase in prepayments for equipment Interest received Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Repayments of) proceeds from short-term borrowings Repayments of long-term borrowings Refunds of guarantee deposits received Repayments of the principal portion of lease liabilities Actual acquisition of interests in subsidiaries Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ (8,269) 16,887 178,594 (54) (4,109) (50) (55,960) (1,293) (61,466) 12,953 253,746 3,510,365 $ 3,764,111	2022 $ (9,872) 3,953 (4,564) 9,571 (4,132) (220) (55,390) - (50,171) 54,908 170,363 2,059,537 $ 2,229,900

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 8, 2023)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

Syncmold Enterprise Corporation (the “Corporation”) was incorporated in the Republic of China (ROC) in July 1979 and is mainly engaged in the processing, manufacturing, trading, technology licensing and related import and export business of various metal molds, plastic molds and electronic parts.

The Corporation’s shares were approved for listing on the emerging stock board of the Taipei Exchange (TPEx) in December 2005 and after obtaining approval from the Financial Supervisory Commission, Executive Yuan in November 2006, the Corporation’s shares were listed on the over-the-counter (OTC) market on January 11, 2007. In November 2009, the Corporation obtained approval to transfer listing of its shares to the Taiwan Stock Exchange (TWSE) and were officially listed and started trading its shares on December 17, 2009.

The consolidated financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by Corporation’s board of directors on May 8, 2023.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC) and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

b. The IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2024 (Note 2) January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2024 January 1, 2024

New IFRSs
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”

Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 -
Comparative Information”

Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current”

Amendments to IAS 1 “Non-current Liabilities with Covenants”

Effective Date
Announced by IASB (Note 1)

To be determined by IASB
January 1, 2024 (Note 2)
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2024
January 1, 2024

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Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

See Note 11 and Tables 6 and 7 for the detailed information of subsidiaries (including the percentages of ownership and main businesses).

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d. Other material accounting policies

Except for the following, refer to the consolidated financial statements for the year ended December 31, 2022.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s material accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Group considers the possible impact of the recent development of the COVID-19 pandemic in Taiwan and its economic environment implications when making its critical accounting estimates on cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (with original maturities within 3 months) Time deposits	March 31, 2023 December 31, 2022 $ 2,012 $ 2,225 2,622,359 2,363,885 1,139,740 1,144,255 $ 3,764,111 $ 3,510,365	March 31, 2022 $ 2,701 2,124,149 103,050 $ 2,229,900

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7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Foreign exchange forward contracts (a) Non-derivative financial assets Domestic listed shares Hybrid financial assets Structured deposits (b) Financial assets at FVTPL-non-current Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Domestic third convertible bonds (Note 18) Non-derivative financial assets Domestic emerging market shares Overseas unlisted shares Private funds	March 31, 2023 December 31, 2022 $ - $ - 97,026 86,154 355,859 617,967 $ 452,885 $ 704,121 $ - $ - 21,381 20,482 29,248 28,725 15,180 14,283 $ 65,809 $ 63,490	March 31, 2022 $ 1,030 81,898 67,853 $ 150,781 $ 360 16,655 36,692 9,293 $ 63,000

a. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

March 31, 2022

			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/RMB	2022.07	US$1,000/RMB6,460
Sell	US$/RMB	2022.07	US$1,000/RMB6,470
Sell	US$/RMB	2022.08	US$1,000/RMB6,452
Sell	US$/RMB	2022.08	US$1,000/RMB6,413
Sell	US$/RMB	2022.08	US$1,000/RMB6,418

The Group entered into foreign exchange forward contracts to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities.

b. The Group successively entered into a one 1-6 month structured time deposit contracts with bank for the three months ended March 31, 2023 and 2022. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract is assessed and mandatorily classified as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.
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8. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturities of more than 3 months Time deposits pledged as collateral with original maturities of more than 3 months Non-current Pledged time deposits with original maturities of more than 1 year	March 31, 2023 December 31, 2022 $ 341,204 $ 238,110 2 - $ 341,206 $ 238,110 $ 3,281 $ 3,272	March 31, 2022 $ 259,071 - $ 259,071 $ 2,290

See Note 28 for detailed information on financial assets at amortized cost pledged as collateral.

9. TRADE RECEIVABLES, NET

At amortized cost Gross carrying amount Less: Allowance for impairment loss	March 31, 2023 December 31, 2022 $ 1,900,196 $ 1,976,706 (7,474) (6,907) $ 1,892,722 $ 1,969,799	March 31, 2022 $ 3,674,389 (5,288) $ 3,669,101

The average credit period of sales of goods was 90-160 days. No interest was charged on trade receivables. The Group uses other publicly available financial information or its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually.

The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default records of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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The following table details the loss allowance of trade receivables based on the Group’s provision matrix.

March 31, 2023

Not Past Due Expected credit loss rate - Gross carrying amount $ 1,833,089 Loss allowance (Lifetime ECLs) - Amortized cost $ 1,833,089 December 31, 2022 Not Past Due Expected credit loss rate - Gross carrying amount $ 1,922,267 Loss allowance (Lifetime ECLs) - Amortized cost $ 1,922,267 March 31, 2022 Not Past Due Expected credit loss rate - Gross carrying amount $ 3,620,842 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,620,842	Less than 30 Days 31 to 90 Days 1.29% 4.68% $ 28,344 $ 28,170 (365) (1,317) $ 27,979 $ 26,853 Less than 30 Days 31 to 90 Days 2.67% 13.42% $ 26,189 $ 23,856 (700) (3,201) $ 25,489 $ 20,655 Less than 30 Days 31 to 90 Days 1.53% 4.83% $ 17,984 $ 31,872 (276) (1,540) $ 17,708 $ 30,332	91 to 180 Days 42.79% $ 8,392 (3,591) $ 4,801 91 to 180 Days 38.52% $ 2,258 (870) $ 1,388 91 to 180 Days 49.19% $ 431 (212) $ 219	Over 180 Days 100.00% $ 2,201 (2,201) $ - Over 180 Days 100.00% $ 2,136 (2,136) $ - Over 180 Days 100% $ 3,260 (3,260) $ -	Total $ 1,900,196 (7,474) $ 1,892,722 Total $ 1,976,706 (6,907) $ 1,969,799 Total $ 3,674,389 (5,288) $ 3,669,101

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Add: Net remeasurement of loss allowance Foreign exchange gains and losses Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 6,907 525 42 $ 7,474	2022 $ 5,071 8 209 $ 5,288

14 -

10. INVENTORIES

Finished goods Work in progress Raw materials	March 31, 2023 December 31, 2022 $ 339,093 $ 374,665 188,996 210,740 279,702 322,580 $ 807,791 $ 907,985	March 31, 2022 $ 465,688 341,938 561,110 $ 1,368,736

The cost of goods sold for the three months ended March 31, 2023 and 2022 included inventory write-downs of $215 thousand and $28,025 thousand, respectively.

11. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements:

Investor
Investee
Nature of Activities
Syncmold Enterprise
Corp.
Grand Advance Inc.
The trading, imports, exports and
investments of electronic parts
Syncmold Enterprise
(Samoa) Corp.
The trading and commercial related
practices of all metal molds and plastic
molds as well as the reinvestment of
subsidiaries in mainland China.
Syncmold Enterprise (USA)
Corp.
The trading, imports and exports of
electronic parts.
Leohab Enterprise Co., Ltd. Precision hardware components
manufacturing
Gatetech Technology Inc.
Precision molding and magnesium alloy
die caster manufacturing and
transaction business
Syncmold Enterprise
Vietnam Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Syncmold Enterprise
(Malaysia) Sdn. Bhd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise
(Singapore) Pte. Ltd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise
(Thailand) Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Grand Advance Inc. Canford International
Limited
Import and export trade and investment
Fullking Development
Limited
Import and export trade and investment
Full Glary Holding Limited Import and export trade and investment
Syncmold Enterprise
(Samoa) Corp.
Full Big Limited
Reinvesting subsidiaries of mainland
China and international business
Forever Business
Development Limited
Reinvesting subsidiaries of mainland
China and international business
Full Celebration Limited
Reinvesting subsidiaries of mainland
China and international business
Fuzhou Fulfil Tech Co.,
Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business
Fujian Khuan Hua Precise
Mold Co., Ltd.
Processing, manufacturing, trading and
related import and export business of
various metal molds, plastic molds and
plastic injection molds
Fuqing Fuqun Electronic
Hardware Tech Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business
Gatetech
Technology Inc.
Gatech Holding Ltd.
General investment business
Leohab Enterprise
Co., Ltd.
Sweet International Group
Ltd.
General investment business
Commuwell Enterprise
(Thailand) Co., Ltd.
Plastic shot and hardware components
manufacturing

Proportion of Ownership (%)
March 31,
2023
December 31,
2022
March 31,
2022
Note
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
70.00
70.00
70.00
Note 2
74.05
73.82
73.82
Notes 1 and 6
100.00
100.00
100.00
Note 5
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
-
-
100.00
Note 4
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
-
Notes 2 and 3
(Continued)

15 -

Investor
Investee
Nature of Activities
Forever Business
Development
Limited
Dongguan Khuan Huang
Precise Mold Plastic Co.,
Ltd.
Processing, manufacturing, trading and
related import and export business of
various metal molds, plastic molds and
plastic injection molds
Canford
International
Limited
Suzhou Fulfil Electronics
Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business
Fullking
Development
Limited
Zhongshan Fulfil Tech. Co.,
Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business
Full Glary Holding
Limited
Kunshan Fulfil Tech Co.,
Ltd.
Manufacturing and assembling of laptop
components such as precision bearing,
hardware and related accessories
Full Celebration
Limited
Chongqing Fulfil Tech Co.,
Ltd.
The processing, manufacturing, related
imports and exports of all electronic,
plastic and electronic parts
Gatech Holding Ltd. Gatech International Ltd.
General investment business
Gatech International
Ltd.
Gatetech (Suzhou)
Technology Co., Ltd.
Aluminum and magnesium alloy
manufacturing and trading
Sweet International
Group Ltd.
Lucky King Holdings Ltd.
General investment business
Lucky King
Holdings Ltd.
Suzhou Leoho Electronics
Co., Ltd.
Precision hardware components
manufacturing
Commuwell Enterprise
(Thailand) Co., Ltd.
Plastic shot and hardware components
manufacturing

Proportion of Ownership (%)
March 31,
2023
December 31,
2022
March 31,
2022
Note
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
-
-
100.00
Notes 2 and 3
(Concluded)

Note 1: Its financial statements for the three months ended March 31, 2023 and 2022 have been reviewed.
Note 2: As the subsidiary is not a major subsidiary, its financial statements for the three months ended March 31, 2023 and 2022 have not been reviewed.
Note 3: For organizational restructuring purposes, the Corporation’s board of directors resolved to transfer 100% equity of Commuwell Enterprise (Thailand) Co., Ltd. held by Lucky King Holdings Ltd. to Leohab Enterprise Co., Ltd. for direct investment. The capital transfer was completed in May 2022.
Note 4: For organizational restructuring purposes, in July 2022, the board of directors resolved to dissolve Full Big Limited, and Full Big Limited was completed the liquidation procedures in October 2022. As the subsidiary is not a major subsidiary, its financial statements for the three months ended March 31, 2022 have not been reviewed.
Note 5: As the subsidiary is a major subsidiary, its financial statements for the three months ended March 31, 2023 have been reviewed. Its financial statements for the three months ended March 31, 2022 have not been reviewed.
Note 6: On March 27, 2023, the Corporation acquired additional 0.23% ownership in Gatetech Technology Inc. for a cash consideration of $1,293 thousand. The proportion of the Group’s ownership was 74.05% as of March 31, 2023. Refer to Note 25 for detailed information on the acquisition of non-controlling interests during 2023.
16 -

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that are not individually material Unlisted company High Grade Tech Co., Ltd. Corebio technologies Co., Ltd. (Note) Smart Automation Technology Inc.	March 31, 2023 December 31, 2022 $ 164,555 $ 153,143 - - 13,746 14,945 $ 178,301 $ 168,088	March 31, 2022 $ 143,678 19,835 14,056 $ 177,569

Note: Considering that the Group’s interest in Corebio Technologies Co., Ltd. on December 31, 2022 was lower than the market value, the management of the Corporation conducted an impairment test on the investment on December 31, 2021, and evaluated whether the carrying amount is less than the recoverable amount. After evaluation, the book value of the investment in Corebio Technologies Co., Ltd. was higher than the recoverable amount, and an impairment loss of $19,835 thousand was recognized in 2022.

Investments were accounted for using the equity method and the share of profit or loss for the three months ended March 31, 2023 and 2022 was calculated based on financial statements which have not been reviewed.

13. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2023 Additions Transfer from prepayments for equipment Disposals Effect of foreign currency exchange differences Balance at March 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expense Disposals Effect of foreign currency exchange differences Balance at March 31, 2023 Carrying amount at March 31, 2023 Cost Balance at January 1, 2022 Additions Transfer from prepayments for equipment Disposals Reclassifications Effect of foreign currency exchange differences Balance at March 31, 2022	Freehold Land $ 770,826 - - - 16 $ 770,842 $ - - - - $ - $ 770,842 $ 770,538 - - - - 141 $ 770,679	Buildings $ 1,267,421 3,661 2,610 (2,654 ) 413 $ 1,271,451 $ 568,575 20,847 (2,504 ) 2,002 $ 588,920 $ 682,531 $ 924,441 4,378 495 (4,973 ) (1,172 ) 22,079 $ 945,248	Equipment Transportation Equipment $ 1,558,758 $ 54,595 6,353 - 8,590 - (29,263 ) - 6,222 24 $ 1,550,660 $ 54,619 $ 1,012,084 $ 29,490 28,251 1,228 (21,509 ) - 3,963 105 $ 1,022,789 $ 30,823 $ 527,871 $ 23,796 $ 1,581,096 $ 41,549 22,780 423 48,116 - (15,981 ) (513 ) 570 - 54,291 1,328 $ 1,690,872 $ 42,787	Office Equipment $ 63,176 281 - (2,413 ) 197 $ 61,241 $ 39,192 2,497 (2,281 ) 130 $ 39,538 $ 21,703 $ 63,002 584 - (345 ) - 1,753 $ 64,994	Other Equipment Property Under Construction Total $ 254,785 $ - $ 3,969,561 5,597 - 15,892 40 - 11,240 (3,424 ) - (37,754 ) 602 - 7,474 $ 257,600 $ - $ 3,966,413 $ 139,080 $ - $ 1,788,421 10,233 - 63,056 (3,149 ) - (29,443 ) 485 - 6,685 $ 146,649 $ - $ 1,828,719 $ 110,951 $ - $ 2,137,694 $ 212,698 $ 268,260 $ 3,861,584 3,441 48,280 79,886 259 - 48,870 (5,034 ) - (26,846 ) - - (602 ) 6,491 9,734 95,817 $ 217,855 $ 326,274 $ 4,058,709 (Continued)

17 -

Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposals Reclassifications Effect of foreign currency exchange differences Balance at March 31, 2022 Carrying amount at March 31, 2022	Freehold Land $ - - - - - $ - $ 770,679	Buildings $ 483,380 18,233 (4,973 ) (122 ) 14,539 $ 511,057 $ 434,191	Equipment Transportation Equipment $ 1,045,195 $ 28,462 26,541 1,000 (15,651 ) (461 ) (207 ) 16 33,530 927 $ 1,089,408 $ 29,944 $ 601,464 $ 12,843	Office Equipment $ 36,460 2,153 (235 ) - 1,162 $ 39,540 $ 25,454	Other Equipment Property Under Construction Total $ 118,878 $ - $ 1,712,375 8,300 - 56,227 (4,439 ) - (25,759 ) - - (313 ) 3,561 - 53,719 $ 126,300 $ - $ 1,796,249 $ 91,555 $ 326,274 $ 2,262,460 (Concluded)

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Building Main building 5-60 years Electromechanical power equipment 4-5 years Equipment 1-23 years Transportation equipment 5-10 years Office equipment 3-10 years Other equipment 1-20 years

See Note 28 for detailed information on property, plant and equipment pledged as collateral.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

March 31, 2023 Carrying amount Lands $ 179,184 Buildings 359,951 Transportation equipment 1,220 $ 540,355 Additions to right-of-use assets Depreciation charge for right-of-use assets Lands Buildings Transportation equipment Income from the subleasing of right-of-use assets (presented in other income)	December 31, 2022 March 31, 2022 $ 181,133 $ 181,087 400,982 586,468 1,441 1,802 $ 583,556 $ 769,357 For the Three Months Ended March 31	December 31, 2022 March 31, 2022 $ 181,133 $ 181,087 400,982 586,468 1,441 1,802 $ 583,556 $ 769,357 For the Three Months Ended March 31	December 31, 2022 March 31, 2022 $ 181,133 $ 181,087 400,982 586,468 1,441 1,802 $ 583,556 $ 769,357 For the Three Months Ended March 31
		2023 $ 2,689 $ 1,223 43,729 222 $ 45,174 $ (1,613)	2022 $ 57,080 $ 1,204 55,861 287 $ 57,352 $ (144)

18 -

Except for the additions, recognized depreciation and subleasing the Group did not have any significant impairment of right-of-use assets during the three months ended March 31, 2023 and 2022.

b. Lease liabilities

Lease liabilities
	March 31,	December 31,	March 31,
	2023	2022	2022
Carrying amount
Current	$ 155,124	$ 158,482	$ 204,043
Non-current	$ 187,733	$ 238,775	$ 369,655
Range of discount rate for lease liabilities was as follows:
	March 31,	December 31,	March 31,
	2023	2022	2022
Buildings	0.81%-4.90%	0.81%-4.90%	0.94%-4.90%
Transportation equipment	0.94%-1.69%	0.94%-4.55%	0.94%-4.55%
Equipment	-	4.75%	-

c. Subleases

The Group subleases its right-of-use assets for buildings under operating leases with lease terms of 1 - 2 year and with the priority to extend the lease. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend.

The maturity analysis of lease payments receivable under operating subleases was as follows:

March 31, 2023 Year 1 $ 6,493 Year 2 2,705 $ 9,198 d. Other lease information Expenses relating to short-term leases Total cash outflow for leases	December 31, 2022 March 31, 2022 $ 6,368 $ 409 4,245 - $ 10,613 $ 409 For the Three Months Ended March 31	December 31, 2022 March 31, 2022 $ 6,368 $ 409 4,245 - $ 10,613 $ 409 For the Three Months Ended March 31	December 31, 2022 March 31, 2022 $ 6,368 $ 409 4,245 - $ 10,613 $ 409 For the Three Months Ended March 31
		2023 $ 3,040 $ (63,330)	2022 $ 5,459 $ (67,381)

The Group leases certain building which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

19 -

15. INTANGIBLE ASSETS

INTANGIBLE ASSETS
	March 31,		December 31,		March 31,
		2023		2022		2022
Trademarks	$	31	$	33	$	46
Computer software		54,948		58,503		56,064
Patents		677		710		775
	$	55,656	$	59,246	$	56,885

Except for the recognized amortization, the Group did not have any significant additions, disposals or impairment of intangible assets during the three months ended March 31, 2023 and 2022.

The above items of intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Trademarks 7-10 years Computer software 1-5 years Patents 1-19 years

16. GOODWILL

Cost Balance at January 1 Balance at end of period Accumulated impairment losses Balance at January 1 Balance at end of period Carrying amount at end of period BORROWINGS a. Short-term borrowings Secured borrowings (Note 28) Mortgage loans Unsecured borrowings Line of credit borrowings	March 31, 2023 December 31, 2022 $ 366,777 $ 366,777 $ 366,777 $ 366,777 $ 42,180 $ 42,180 $ 42,180 $ 42,180 $ 324,597 $ 324,597 March 31, 2023 December 31, 2022 $ 352,692 $ 387,682 1,124,406 1,089,681 $ 1,477,098 1,477,363	March 31, 2022 $ 366,777 $ 366,777 $ 42,180 $ 42,180 $ 324,597 March 31, 2022 $ 400,432 505,000 $ 905,432

17. BORROWINGS

20 -

The weighted average effective interest rates on bank loans were 1.66%-5.3%, 1.49%-5% and 0.61%-3.75%, per annum as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

b. Long-term borrowings

Secured borrowings (Note 28) Mortgage loans Less: Current portions	March 31, 2023 December 31, 2022 $ 190,138 $ 194,247 (16,468) (16,476) $ 173,670 $ 177,771	March 31, 2022 $ 206,598 (16,555) $ 190,043

The effective interest rate on long-term borrowings were 1.57%-1.67%, 1.45%-1.55% and 0.9%-1%, on March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

18. BONDS PAYABLE

Domestic third unsecured convertible bonds	March 31, 2023 December 31, 2022 $ 1,181,714 $ 1,178,724	March 31, 2022 $ 1,169,344

On September 9, 2021, the Company issued 12,000 units NTD denominated unsecured convertible corporate bonds with 0% coupon rate, 3 years issue period and total principal amount of NT$1,200,000 thousand.

The bonds are exchangeable into ordinary shares of the Company at any time on or after December 10, 2021 and prior to September 9, 2024 except during closed period or suspension period.

The conversion price of bonds is set based on the arithmetic mean of the business day’s closing share price multiplied by 102% premium rate before the effective date on August 20, 2021. In accordance with above method, the conversion price at the time of issuance of the convertible corporate bond is NT$61.6 per share on March 31, 2023.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares has exceeded 30% of the current conversion price for 30 consecutive business days, the Corporation may send a copy of “Bond Redemption Notice” with expiration of one month by registered mail, and the expiration date of the period is determined as the base date for recovery of bonds. The Corporation will redeem the bonds at their par value within 5 business days following the base date.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares is lower than 10% of original total issue amount, the Corporation will therefore be entitled to send out a 30-day-expiration “Bond Redemption Notice” based on names recorded on bondholder’s name list 5 business days prior to the mailing day. The Corporation will redeem the bonds at their par value within 5 business days following the base date.

21 -

The convertible bonds contain both liability and equity components: The equity components are presented in equity under the heading of capital surplus-options. The liability components are recognized as liabilities of embedded derivative financial instruments and non-derivative products. Such embedded derivative financial instruments were assessed at fair value of NT$0 thousand, NT$0 thousand and NT$360 thousand (included in financial assets - non-current which were measured at FVTPL); non-derivative product liabilities have been measured on March 31, 2023, December 31, 2022 and March 31, 2022 at NT$1,181,714 thousand, NT$1,178,724 thousand and NT$1,169,344 thousand (included in bonds payable) respectively based on amortized cost and its effective interest rate originally recognized was 1.0663%.

Proceeds from insurance (less transaction cost of NT$4,998 thousand)

Equity component

Liability component at the date of issue (including NT$1,162,417 thousand of bonds
payable and NT$360 thousand of financial asset at fair value - non-current)
Interest charged at an effective interest rate of 1.0663%
Loss on valuation of financial instrument

Liability component on December 31, 2022
Interest charged at an effective interest rate of 1.0663%
Convertible bonds converted into ordinary shares

Liability component on March 31, 2023

$ 1,337,453

(175,396)
1,162,057
16,307

360
1,178,724
3,089

(99)
$ 1,181,714

As of March 31, 2022, the Corporation’s unsecured convertible bonds with a face value of $100 thousand had been converted into 1600 ordinary shares. As the registration of the shares was not completed, the share options were recognized as capital collected in advance.

19. OTHER PAYABLES

Payables for salaries or bonuses Others (Note 27)	March 31, 2023 December 31, 2022 $ 206,079 $ 204,625 288,946 349,217 $ 495,025 $ 553,842	March 31, 2022 $ 191,693 225,745 $ 417,438

20. RETIREMENT BENEFIT PLANS

For the three months ended March 31, 2023 and 2022, the pension expenses of defined benefit plans were $111 thousand and $109 thousand, respectively, and these were calculated based on the actuarially determined pension cost rate on December 31, 2022 and 2021, respectively.

22 -

21. EQUITY

a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Amount of shares authorized Number of shares issued and fully paid (in thousands) Amount of shares issued Capital collected in advance	March 31, 2023 December 31, 2022 200,000 200,000 $ 2,000,000 $ 2,000,000 123,724 123,724 $ 1,237,242 $ 1,237,242 $ 16 $ -	March 31, 2022 200,000 $ 2,000,000 123,724 $ 1,237,242 $ -

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and a right to dividends.

The authorized shares include 3,000 thousand shares allocated for the exercise of employee stock options.

As of March 31, 2022, the Corporation’s unsecured convertible bonds with a face value of $100 thousand had been converted into 1,600 ordinary shares. As the registration of the shares was not completed, the share options were recognized as capital collected in advance.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note 1) Issuance of ordinary shares The difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition Consolidation excess Unclaimed dividends May only be used to offset a deficit (Note 2) Changes in percentage of ownership interests in subsidiaries May not be used for any purpose Convertible bonds option	March 31, 2023 December 31, 2022 $ 776,616 $ 776,519 414,247 413,526 852,372 852,372 122 107 143,150 143,150 175,382 175,396 $ 2,361,889 $ 2,361,070	March 31, 2022 $ 1,184,809 413,526 852,372 107 143,150 175,396 $ 2,769,360

23 -
Note 1: Such capital surplus, which includes the amount in excess of par value of issued stocks (including the issuance of ordinary shares at the excess premium, the conversion premium of bonds, and the premium of stocks due to the consolidation excess, etc.), unclaimed dividends, and the difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition, may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).
Note 2: Such capital surplus which arises from the effects of changes in ownership interests in subsidiaries may only be used to offset a deficit.
c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 22-b.

As the Corporation is currently in the growth stage, the Corporation considers its industry development and long-term interests of shareholders as well as its programs to maintain operating efficiency and meet its financial goals when determining the distribution of bonuses in shares or cash. The board of directors shall propose allocation ratio every year and propose such allocation ratio at shareholder’s meeting. For the distribution of bonuses to shareholders, cash dividends are preferred. Distribution of earnings may also be made in the form of stock dividends, provided that the ratio of cash dividends distributed is 5% to 100% of the total dividends distributed.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Corporation.

The appropriations of earnings for 2022 and 2021 which were approved in board of directors’ meeting on March 15, 2023 and the shareholders’ meeting on June 10, 2022, respectively, were as follows:

Legal reserve Special reserve Cash dividends Dividends per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 37,643 $ (168,395) $ 371,172 $ 3.00	2022 $ 25,211 $ 51,576 $ 247,448 $ 2.00

The shareholders’ meeting proposed to allocate capital on June 10, 2022 surplus of $408,290 thousand through $3.30 per share in cash.

24 -

The appropriation of earnings and capital surplus for 2022 is subject to the resolution of the shareholders in the shareholders’ meeting to be held on June 16, 2023

d. Special reserve

Special reserve
Balance at January 1 and March 31	For the Three Months Ended March 31 2023 2022 $ 687,191 $ 635,615
		2023 $ 687,191	2022 $ 635,615

On the initial application of the IFRSs, the net increase arising from retained earnings was not enough for the special reserve appropriation; thus, the Corporation appropriated a special reserve at the amount of $230,916 thousand representing the remaining amount in retained earnings that resulted from the conversion to IFRSs. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRSs. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter, distributed.

e. Non-controlling interests

Balance at January 1 Share of loss for the period Other comprehensive income (loss) during the period Exchange differences on translating the financial statements of foreign entities Changes in ownership interests in subsidiaries (Note 25) Balance at March 31	For the Three Months Ended March 31 2023 2022 $ 335,132 $ 320,188 (10,880) (2,574) 1,557 11,354 (2,014) - $ 323,795 $ 328,968	For the Three Months Ended March 31 2023 2022 $ 335,132 $ 320,188 (10,880) (2,574) 1,557 11,354 (2,014) - $ 323,795 $ 328,968	For the Three Months Ended March 31 2023 2022 $ 335,132 $ 320,188 (10,880) (2,574) 1,557 11,354 (2,014) - $ 323,795 $ 328,968
		2023 $ 335,132 (10,880) 1,557 (2,014) $ 323,795	2022 $ 320,188 (2,574) 11,354 - $ 328,968

22. NET PROFIT

a. Depreciation, amortization and employee benefits expense:

Employee benefits expense Defined contribution plan Defined benefit plan Other employee benefits Depreciation Amortization			For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
			2023	Total $ 21,568 111 415,871 $ 437,550 $ 108,230 $ 6,085			2022
		Operating Costs $ 16,546 60 288,116 $ 304,722 $ 74,790 $ 765	Operating Expenses $ 5,022 51 127,755 $ 132,828 $ 33,440 $ 5,320			Operating Costs $ 18,173 59 454,598 $ 472,830 $ 79,142 $ 633	Operating Expenses $ 5,692 50 143,903 $ 149,645 $ 34,437 $ 5,191	Total $ 23,865 109 598,501 $ 622,475 $ 113,579 $ 5,824

25 -
b. Compensation of employees and remuneration of directors

According to the Corporation’s Articles of Incorporation, the Corporation accrues compensation of employees and remuneration of directors at rates of no less than 3% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. The compensation of employees and the remuneration of directors for the three months ended March 31, 2023 and 2022, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors Amount Compensation of employees Remuneration of directors	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2023 2022 8.86% 8.01% 1.95% 1.76% For the Three Months Ended March 31
		2023 $ 5,137 $ 1,128	2022 $ 3,616 $ 794

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of compensation of employees and remuneration of directors and supervisors for 2022 and 2021 that were resolved by the board of directors on March 15, 2023 and March 15, 2022, respectively, are as shown below:

Amount

Compensation of employees Remuneration of directors and supervisors	For the Year Ended December 31	For the Year Ended December 31
	2022 Cash $ 43,000 9,800	2021
		Cash $ 31,000 7,000

There is no difference between the actual amounts of the compensation of employees and remuneration of directors and supervisors for 2022 and 2021 and recognized in the profit and loss for the year ended December 31, 2022 and 2021.

Information on the compensation of employees and remuneration of directors and supervisors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

26 -

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current period Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 32,370 (20,986) $ 11,384	2022 $ 34,307 865 $ 35,172

b. Income tax assessments

The income tax returns of the Corporation through 2021 have been assessed by the tax authorities.

The income tax returns of Gatetech Technology Inc. through 2020 have been assessed by the tax authorities.

Except for the year 2020, the income tax returns of Leohab Enterprise Co., Ltd. through 2021 have been assessed by the tax authorities.

All the subsidiaries in China and Thailand have completed income tax returns within the time limit specified by the local tax collection authority.

24. EARNINGS PER SHARE

Net Profit for the Period

Net Profit for the Period
Earnings used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Interest on convertible bonds Earnings used in the computation of diluted earnings per share	For the Three Months Ended March 31
		2023 $ 37,481 3,089 $ 40,570	2022 $ 30,921 3,056 $ 33,977

27 -

The weighted average number of ordinary shares outstanding (in thousands of shares) is as follows:

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Convertible bonds Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 123,725 19,479 648 143,852	2022 123,724 17,964 414 142,102

The Group offered to settle the compensation or bonuses paid to employees in cash or shares, the Group assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

25. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

On March 27, 2023, the Corporation subscribed for additional new shares of Gatetech Technology Inc. at 0.23% from its existing ownership percentage for a cash consideration of $1,293 thousand, and increased the Corporation’s percentage of ownership from 73.82% to 74.05%.

The above transactions were accounted for as equity transactions, since the Corporation did not cease to have control over these subsidiaries.

have control over these subsidiaries.
	For the Three
	Months Ended
	March 31, 2023
Consideration paid	$ (1,293)
The proportionate share of carrying amount of the net assets of the subsidiary
transferred to non-controlling interests	2,014
Difference recognized from equity transactions	$ 721
Adjustment of difference recognized from equity transactions
Capital surplus-difference between actual acquisition of subsidiary’s equity prices and
carrying amount	$ 721

28 -

26. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

March 31, 2023

	FairValue	FairValue
Level 1 $ 1,303,931	Level 2 Level 3 $ - $ - FairValue		Total $ 1,303,931
Level 1 $ 1,229,880	Level 2 Level 3 $ - $ - FairValue		Total $ 1,229,880
Level 1 $ 1,425,120	Level 2 $ -	Level 3 $ -	Total $ 1,425,120

b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

March 31, 2023

Financial assets at FVTPL Listed shares Structured deposits Emerging market shares Overseas unlisted shares Private funds	Level 1 $ 97,026 355,859 11,037 - - $ 463,922	Level 2 $ - - - - - $ -	Level 3 $ - - 10,344 29,248 15,180 $ 54,772	Total $ 97,026 355,859 21,381 29,248 15,180 $ 518,694

29 -

December 31, 2022

Financial assets at FVTPL Listed shares Structured deposits Emerging market shares Overseas unlisted shares Private funds March 31, 2022 Financial assets at FVTPL Foreign exchange forward contracts Listed shares Bonds payable Structured deposits Emerging market shares Overseas unlisted shares Private funds	Level 1 $ 86,154 617,967 9,334 - - $ 713,455 Level 1 $ - 81,898 - 67,853 9,783 - - $ 159,534	Level 2 $ - - - - - $ - Level 2 $ 1,030 - 360 - - - - $ 1,390	Level 3 $ - - 11,148 28,725 14,283 $ 54,156 Level 3 $ - - - - 6,872 36,692 9,293 $ 52,857	Total $ 86,154 617,967 20,482 28,725 14,283 $ 767,611 Total $ 1,030 81,898 360 67,853 16,655 36,692 9,293 $ 213,781

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

Balance at January 1 Recognized in profit or loss (included in net gain loss on fair value changes of financial instruments at FVTPL) Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 54,156 616 $ 54,772	2022 $ 54,643 (1,786) $ 52,857

3) Valuation techniques and inputs applied for level 2 fair value measurement

Financial Instrument Foreign exchange forward contracts Domestic third unsecured convertible bonds	Valuation Technique and Inputs
	Discounted cash flows Future cash flows are estimated based on observable forward exchange rates at the end of the year and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. Under the assumption that bonds will be redeemed on September 9, 2024, discount rate adopted is calculated via interpolation method using government bond yield rates from public offer 2-year and 5- year period.

Financial Instrument
Foreign exchange forward
contracts
Domestic third unsecured
convertible bonds

Valuation Technique and Inputs

Discounted cash flows Future cash flows are estimated based
on observable forward exchange rates at the end of the year
and contract forward rates, discounted at a rate that reflects
the credit risk of various counterparties.
Under the assumption that bonds will be redeemed on
September 9, 2024, discount rate adopted is calculated via
interpolation method using government bond yield rates
from public offer 2-year and 5- year period.

30 -
4) Valuation techniques and inputs applied for Level 3 fair value measurement

Fair values of emerging market shares are measured using the market approach, while the fair values of overseas unlisted shares and private funds are measured using the asset approach.

c. Categories of financial instruments

Categories of financial instruments
	March 31,		December 31,		March 31,
		2023		2022		2022
Financial assets
Mandatorily classified as at FVTPL	$	518,694	$	767,611	$	213,781
Financial assets at amortized cost (Note 1)		6,230,645		5,996,361		6,662,969
Financial liabilities
Financial liabilities at amortized cost (Note 2)		4,470,744		4,667,248		4,979,096

Financial liabilities at amortized cost (Note 2)

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, trade receivables, other receivables, and refundable deposits.
Note 2: The balances include financial liabilities at amortized cost, which comprise notes payable and trade payables, other payables, short-term borrowings, long-term borrowings, current portion of long-term borrowing, bonds payable, and guarantee deposits received.
d. Financial risk management objectives and policies

The Group’s major financial instruments include cash and cash equivalents, financial assets mandatorily classified as at FVTPL, financial assets at amortized costs, equity investment, trade receivables, trade payables, accounts payable, bonds payable, short-term borrowings and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). There is no change in the method of the measurement of market risk.

There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

Several subsidiaries of the Group have foreign currency sales and purchases, which exposes the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 29.

31 -

Sensitivity analysis

The Group is mainly exposed to the USD and RMB.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. A negative number below indicates decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be positive.

Taiwan dollar against the relevant currency, there would pre-tax profit, and the balances below would be positive.	be an equal and opposite impact on	be an equal and opposite impact on	be an equal and opposite impact on
USD impact USD:NTD USD:RMB USD:VND RMB impact RMB:NTD RMB:USD	For the Three Months Ended March 31
		2023 $ (2,010) $ (15,087) $ (200) $ (1,843) $ (446)	2022 $ (1,201) $ (22,741) $ (825) $ (1,064) $ (458)

This was mainly attributable to the exposure on outstanding receivables and payables in USD and RMB which were not hedged at the end of the reporting period.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign currency risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31,	March 31,	December 31,	March 31,	March 31,
		2023	2022		2022
Fair value interest rate risk
Financial assets	$	1,840,086	$ 2,003,604	$	432,264
Financial liabilities		3,191,807	3,247,591		2,855,072
Cash flow interest rate risk
Financial assets		2,619,297	2,362,027		2,120,548

32 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding at the end of the reporting period. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2023 and 2022 would have increased/decreased by $6,548 thousand and $5,301 thousand, respectively, which was mainly attributable to the Group’s exposure to interest rates on its variable-rate deposits.

c) Other price risk

The Group was exposed to equity price risk through its investments in domestic listed shares, domestic emerging market shares, mutual funds and overseas unlisted shares and private funds. In addition, the Group has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower, pre-tax profit for the three months ended March 31, 2023 and 2022 would have increased/decreased by $1,628 thousand and $1,445 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the carrying amount of the respective recognized financial assets as stated in the balance sheets.

In order to reduce credit risk, the management team of the Group designated a special team to decide the credit ratings of counterparties and other monitoring procedures to make sure there are appropriate actions taken to collect the overdue receivables. Additionally, on each balance sheet date, the Group reviews the recoverable amounts to ensure appropriate allowances have been made for doubtful accounts. Therefore, the Group considers its credit risk to be significantly reduced.

The Group continuously assesses the financial conditions of customers with outstanding receivables.

As the counterparties of the Group are financial institutions and companies with good credit ratings, the Group has limited credit risk.

33 -

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity, The Group had available unutilized short-term bank loan facilities set out in below.

Financing facilities

Unsecured bank overdraft facilities (reviewed annually): Amount used Amount unused Secured bank overdraft facilities Amount used Amount unused	March 31, 2023 December 31, 2022 $ 1,124,406 $ 1,089,681 2,797,007 3,133,506 $ 3,921,413 $ 4,223,187 $ 542,830 $ 581,929 112,173 74,023 $ 655,003 $ 655,952	March 31, 2022 $ 505,000 3,494,895 $ 3,999,895 $ 607,030 52,520 $ 659,550

27. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related party name and category

Related Party Name Related Party Category

Related Party Name	Related Party Category
Chen Chien Hung	Related party in substance (first-degree relative of the
	Corporation’s director)
Chen Chien Yuan	The legal representative of the Corporation’s director
High Grade Tech Co., Ltd.	Associate
Smart Automation Technology Inc.	Associate
Dongguan Smart Automation Technology Inc. The subsidiary of associate

b. Acquisition of property, plant and equipment

Acquisition of property, plant and equipment
Related Party Category The subsidiaries of associates	For the Three Months Ended March 31
		2023 $ 82	2022 $ -

34 -

c. Lease agreements

Related Party Category Lease assets acquired Related party in substance The legal representative of the Corporation’s director Line Item Related Party Category March 31, 2023 Lease liabilities Related party in substance $ 1,533 The legal representative of the Corporation’s director 832 $ 2,365 Related Party Category Interest expense Related party in substance The legal representative of the Corporation’s director Lease expense The legal representative of the Corporation’s director Lease expenses included expenses relating to short-term leases.	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2023 2022 $ - $ 2,879 - 1,574 $ - $ 4,453 December 31, 2022 March 31, 2022 $ 1,948 $ 2,758 1,058 1,508 $ 3,006 $ 4,266 For the Three Months Ended March 31
		2023 $ 4 2 $ 6 $ 218	2022 $ 1 1 $ 2 $ -

The rental amounts agreed in lease contracts between the Group and other related parties are determined based on market prices and general payment terms.

d. Acquisition of other assets

Line Item Related Party Category Intangible assets Associates The subsidiaries of associates	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 1,264 - $ 1,264	2022 $ - 67 $ 67

35 -

e. Payables to related parties (excluding loans from related parties)

		March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
Line Item	Related Party Category		2023		2022		2022
Other payables	Associates	$	-	$	78	$	-

f. Remuneration of key management personnel

Related Party Category Short-term employee benefits Post-employment benefits	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2023 $ 10,810 79 $ 10,889	2022 $ 11,218 79 $ 11,297

The remuneration of directors and key executives, as determined by the remuneration committee based on the performance of individuals and market trends.

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for borrowings and performance bond:

Property, plant and equipment Financial assets at amortized cost	March 31, 2023 December 31, 2022 $ 819,569 $ 819,017 3,283 3,272 $ 822,852 $ 822,289	March 31, 2022 $ 822,410 2,290 $ 824,204

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The significant financial assets and liabilities of entities in the denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

March 31, 2023

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	45,307	30.45 (USD:NTD)	$ 1,379,598
USD		51,163	6.8717 (USD:RMB)	1,557,913
USD		3,809	23,873 (USD:VND)	115,984
RMB		51,997	4.431 (RMB:NTD)	230,399
RMB		10,068	0.1455 (RMB:USD)	44,611
				(Continued)

36 -

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Non-monetary items
Financial assets at FVTPL -
non-current
USD	$	961	30.45 (USD:NTD) $	29,248
Financial liabilities
Monetary items
USD		38,706	30.45 (USD:NTD)	1,178,598
USD		1,615	6.8717 (USD:RMB)	49,177
USD		3,151	23,873 (USD:VND)	95,948
RMB		10,395	4.431 (RMB:NTD)	46,060
				(Concluded)
December 31, 2022
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	48,301	30.71 (USD:NTD) $	1,483,324
USD		64,171	6.9646 (USD:RMB)	1,970,691
USD		1,610	23,959 (USD:VND)	49,443
RMB		48,069	4.408 (RMB:NTD)	211,888
RMB		10,148	0.1435 (RMB:USD)	44,732
Non-monetary items
Financial assets at FVTPL -
non-current
USD		935	30.71 (USD:NTD)	28,725
Financial liabilities
Monetary items
USD		41,754	30.71 (USD:NTD)	1,282,265
USD		1,697	6.9646 (USD:RMB)	52,115
USD		867	23,959 (USD:VND)	26,626
RMB		11,030	4.408 (RMB:NTD)	48,620
March 31, 2022
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	63,969	28.625 (USD:NTD) $	1,831,113
USD		80,495	6.3482 (USD:RMB)	2,304,169
USD		3,594	23,120 (USD:VND)	102,878
RMB		27,530	4.5060 (RMB:NTD)	124,050
RMB		10,154	0.1574 (RMB:USD)	45,754
				(Continued)

37 -

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Non-monetary items
Financial assets at FVTPL -
non-current
USD	$	1,282	28.625 (USD:NTD) $	36,692
Financial liabilities
Monetary items
USD		59,775	28.625 (USD:NTD)	1,711,059
USD		1,049	6.3482 (USD:RMB)	30,028
USD		713	23,120 (USD:VND)	20,410
RMB		3,922	4.5060 (RMB:NTD)	17,673
				(Concluded)

The Group is mainly exposed to the USD and the RMB. The following information was aggregated by the functional currencies of the group entities in the Group, and the exchange rates between the respective functional currencies and the presentation currency were disclosed. The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency NTD USD RMB VND Other	For the Three Months Ended March 31	For the Three Months Ended March 31
	2023 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) $ (1,976) 30.395 (USD:NTD) 594 4.441 (RMB:NTD) (33,043) 0.00127 (VND:NTD) (248) (20) $ (34,693)	2022
		Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) $ 15,557 27.994 (USD:NTD) 171 4.406 (RMB:NTD) (8,365) 0.00122 (VND:NTD) 444 110 $ 7,917

30. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
38 -
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
9) Trading in derivative instruments (Table 7)
10) Intercompany relationships and significant intercompany transactions (Table 8)
b. Information on significant investees (Table 6)
c. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 7)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Tables 1, 2, 4, 5 and 8)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
- c) The amount of property transactions and the amount of the resultant gains or losses
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to the financing of funds
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services
d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 9)

31. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments were electronic equipment and molding.

39 -

No operating segments have ceased operation during the period.

a. Segment revenue and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments:

reportable segments:
Equipment - electronic parts - plastic molding Revenue from continuing operations Other income Other gains and losses Interest income Net foreign exchange (loss) gain Net gain on financial assets at fair value through profit or loss Share of profit of associates Interest expenses General and administrative expenses Income before tax	Segment Revenue For the Three Months Ended March 31		Segment Income
			For the Three Months Ended March 31
	2023 $ 1,815,672 14,592 $ 1,830,264	2022 $ 2,678,627 86,433 $ 2,765,060	2023 $ 204,392 487 204,879 4,892 (6,786) 19,106 (34,693) 26,603 2,908 (14,894) (164,030) $ 37,985	2022 $ 236,337 248 236,585 5,347 (2,450) 3,953 7,917 1,165 8,097 (12,006) (185,089) $ 63,519

The above segment revenue and results were generated from the transactions with external customers. There were no inter-segment transactions for the three months ended March 31, 2023 and 2022.

Segment profit represented the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, other income, other gains and losses, interest income, net foreign exchange (loss) gain, net gain on financial assets at FVTPL, share of profit of associates, interest expense and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment total assets

The Group has no key operational personnel to monitor segment performance, and thus, the amount of segment assets is zero.

40 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE THREE MONTHS ENDED MARCH 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
0	Syncmold Enterprise Corporation	Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise Vietnam Co., Ltd. Grand Advance Inc. Gatetech Technology Inc. Leohab Enterprise Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes	$ 100,000 100,000 100,000 100,000 100,000	$ 100,000 100,000 100,000 100,000 100,000	$ - - - - -	- - - - -	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	$ - - - - -	- - - - -	- - - - -	$ 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation)	$ 2,243,944 (40% of the net worth of the Corporation) 2,243,944 (40% of the net worth of the Corporation) 2,243,944 (40% of the net worth of the Corporation) 2,243,944 (40% of the net worth of the Corporation) 2,243,944 (40% of the net worth of the Corporation)
1	Syncmold Enterprise (Samoa) Corp.	Fujian Khuan Hua Precise Mold Co., Ltd. Fullking Development Limited Chongqing Fulfil Tech Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Syncmold Enterprise Corporation	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes	60,900 70,035 137,025 60,900 316,680	60,900 70,035 137,025 60,900 316,680	- 24,360 45,675 - 225,330	- 0.00 2.00 - 0.00	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - -	- - - - -	- - - - -	1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation)	2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation)
2	Grand Advance Inc.	Syncmold Enterprise Corporation Fullking Development Limited Syncmold Enterprise (Samoa) Corp. Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise (USA) Corp.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes Yes	167,475 45,675 60,900 60,900 60,900 27,405	106,575 45,675 60,900 60,900 60,900 27,405	106,575 45,675 - - - 12,180	0.00 0.00 - - - 0.00	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - -	- - - - - -	- - - - - -	1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation)	2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation)
3	Fuzhou Fulfil Tech Co., Ltd	Fujian Khuan Hua Precise Mold Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes	44,312 57,606 44,312	44,312 57,606 44,312	- - -	- - -	Short-term financing Short-term financing Short-term financing	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation)	2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation)

(Continued)

41 -

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1 and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
4	Suzhou Fulfil Electronics Co., Ltd.	Kunshan Fulfil Tech Co., Ltd.	Other receivables from related parties	Yes	$ 39,881	$ 39,881	$ -	-	Short-term financing	$ -	Operating capital	$ -	-	-	$ 1,121,972 (20% of the net worth of the Corporation)	$ 2,803,931 (50% of the net worth of the Corporation)
5	Zhongshan Fulfil Tech. Co., Ltd.	Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Chongqing Fulfil Tech Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes	35,450 35,450 44,312	35,450 35,450 44,312	- - -	- - -	Short-term financing Short-term financing Short-term financing	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation)	2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation) 2,803,931 (50% of the net worth of the Corporation)

Note 1: The authorized amount of loans was approved by the board of directors.

Note 2: The highest balance, ending balance, and the actual amount borrowed were calculated based on the exchange rate at the end of March 2023.

Note 3: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

42 -

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	Syncmold Enterprise Corporation	Gatetech Technology Inc. Leohab Enterprise Co., Ltd. Syncmold Enterprise Vietnam Co., Ltd. Commuwell Enterprise (Thailand) Co., Ltd.	Subsidiary Subsidiary Subsidiary Subsidiary	$ 1,121,972 (20% of the net worth of the Corporation) 1,121,972 (20% of the net worth of the Corporation) 1,682,958 (30% of the net worth of the Corporation) 1,682,958 (30% of the net worth of the Corporation)	$ 200,000 300,000 609,000 (US$ 20,000 thousand ) 53,838	$ 200,000 300,000 609,000 (US$ 20,000 thousand ) 53,838	$ 50,000 225,000 44,762 -	$ - - - -	3.57 5.35 10.86 0.96	$ 2,804,931 (50% of the net worth of the Corporation) 2,804,931 (50% of the net worth of the Corporation) 2,804,931 (50% of the net worth of the Corporation) 2,804,931 (50% of the net worth of the Corporation)	Y Y Y Y	N N N N	N N N N

43 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD MARCH 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		March 31, 2023	March 31, 2023		Note
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Syncmold Enterprise Corporation Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Gatetech (Suzhou) Technology Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	Shares Gigastone Corporation Tiga Gaming Inc. Foxfortune Technology Ventures Limited Hercules BioVenture, L.P. Winmate Inc. Private funds China Development of Healthcare Venture of Limited Partnership Structured commodity Fuban Huayi Bank RMB structured deposit yue hui ying 23020048 Linked interest rate (ten-year treasury bond maturity yield) structured deposit products No. 18 Lyue xion ying profit 22110091 Lyue xion ying profit 22090283 Lyue xion ying profit 22090282 Lyue xion ying profit 23020046 Lyue xion ying profit 22120273	- - - - - - - - - - -	Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	847,011 1,332,132 1,000,000 210,526 942,000 20,360,270 - - - - - - -	$ 11,037 10,344 20,119 9,129 97,026 15,180 66,605 44,354 44,554 44,621 44,620 44,399 66,706	1.67 5.06 5.80 2.63 1.29 0.96 - - - - - - -	$ 11,037 10,344 20,119 9,129 97,026 15,180 66,605 44,354 44,554 44,621 44,620 44,399 66,706	(Notes 2 and 6) (Notes 3 and 6) (Notes 4 and 6) (Notes 4 and 6) (Notes 2 and 6) (Notes 4 and 6) (Notes 5 and 6) (Notes 5 and 6) (Notes 5 and 6) (Notes 5 and 6) (Notes 5 and 6) (Notes 5 and 6) (Notes 5 and 6)

Note 1: The negotiable securities in the table above are the shares, bonds and mutual funds recognized under IFRS 9 - financial instruments.

Note 2: The shares are calculated at the strike price as of March 31, 2023.

Note 3: The shares are measured using the market approach.

Note 4: The shares are measured using the asset approach.

Note 5: The structured commodity is calculated at its contract worth as of March 31, 2023.

Note 6: No guarantees, pledged collateral or other restricted situations.

Note 7: Refer to Tables 6 and 7 for information on investments in subsidiaries and associates.

44 -

TABLE 4

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation	Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd Suzhou Fulfil Electronics Co., Ltd.	Parent company Parent company Parent company Subsidiary Subsidiary Subsidiary	Sales Sales Sales Purchase Purchase Purchase	$ (285,875) (106,393) (198,492) 285,875 106,393 198,492	(67) (34) (47) 44 16 31	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ - - - - - -	- - - - - -	$ 358,144 144,718 259,545 (358,144) (144,718) (259,545)	59 27 42 (44) (18) (32)

Note 1: Payment terms are the same as the payment terms of non-related parties.

Note 2: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

45 -

TABLE 5

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL MARCH 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate		Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation	Parent company Parent company Parent company Parent company Parent company	$ 106,575 (Note 1) 225,330 (Note 1) 144,718 358,144 259,545	- - - - -	$ - - - - -	- - - - -	$ - 45,675 34,895 57,439 48,460	$ - - - - -

Note 1: Financing.

Note 2: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

46 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE THREE MONTHS ENDED MARCH 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of March 31, 2023	As of March 31, 2023	As of March 31, 2023	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				March 31, 2023	December 31, 2022	Number of Shares	%	Carrying Amount
Syncmold Enterprise Corporation Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Gatetech Technology Inc. Gatech Holdings Ltd. Leohab Enterprise Co., Ltd. Sweet International Group Ltd.	Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. High Grade Tech Co., Ltd. Corebio Technologies Co., Ltd. Smart Automation Technology Inc. Leohab Enterprise Co., Ltd. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn., Bhd. Syncmold Enterprise (Singapore) Pte., Ltd. Syncmold Enterprise (Thailand) Co., Ltd. Canford International Limited Fullking Development Limited Full Glary Holding Limited Forever Business Development Limited Full Celebration Limited Gatech Holdings Ltd. Gatech International Ltd. Sweet International Group Ltd. Commuwell Enterprise (Thailand) Co., Ltd. Lucky King Holdings Ltd.	Samoa Samoa USA Taiwan Taiwan Taiwan Taiwan Taiwan Vietnam Malaysia Singapore Thailand Samoa Hong Kong Hong Kong Samoa Samoa Samoa Samoa British Virgin Islands Thailand Mauritius	Trading, import and export and investment in electronic parts Trading and related import and export businesses of metal molds and plastic molds as well as the reinvestment of subsidiaries in mainland China Trading, import and export in electronic parts The design and sale of television hangers and related import and export businesses Medical technology and precision instrument wholesale and retail Software design services Precision hardware components manufacturing Precise molding and magnesium alloy die caster manufacturing and transaction business Trading, import and export in electronic parts Trading, import and export in electronic parts, customer support and service center Trading, import and export in electronic parts, electronic components and parts design Trading, import and export in electronic parts Import and export trade and investment business Import and export trade and investment business Import and export trade and investment business Reinvestment in subsidiaries in mainland China and international trade Reinvestment in subsidiaries in mainland China and international trade General investment business General investment business General investment business Plastic shot and hardware components manufacturing General investment business	$ 506,240 110,598 32 36,075 52,000 15,680 232,677 557,356 579,944 7,192 1,100 33,638 119,342 160,175 259,720 125,957 147,710 647,041 657,284 147,834 190,728 147,834	$ 506,240 110,598 32 36,075 52,000 15,680 232,677 556,063 579,944 7,192 1,100 33,638 119,342 160,175 259,720 125,957 147,710 647,041 657,284 147,834 190,728 147,834	- 3,546 - 2,280 5,200 1,568 16,620 42,561 - - - - - - - - - 20,130 20,268 - - -	100.00 100.00 100.00 35.63 38.29 49.00 70.00 74.05 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ 2,874,821 2,151,502 (3,415) 164,555 - 13,746 213,236 663,174 478,603 2,714 5,844 12,673 1,364,071 1,061,545 249,923 353,979 106,349 602,634 602,634 306,426 229,736 300,112	$ (13,892) (904) (123) 11,532 - (2,449) (7,240) (31,985) (6,430) 577 256 - (21,379) 25,786 (3,268) (1,444) (27,646) (17,072) (17,072) (1,661) 5,039 (1,661)	$ (13,608) 349 (123) 4,108 - (1,200) (5,423) (24,117) (6,430) 577 256 - (21,379) 25,702 (3,038) (948) (27,646) (17,072) (17,072) (1,661) 5,039 (1,661)	(Note 1) (Note 1) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 1) (Note 1) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)

Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: Calculated based on the non-reviewed financial statements of the investee company and the Group’s shareholding ratio.

Note 3: Refer to Table 7 for related information on investees from mainland China.

Note 4: The profit and loss of investments between reinvested companies, investments accounted for using the equity method, and the equity of investee companies were all eliminated during the preparation of the consolidated financial statements, except for High Grade Tech Co., Ltd., Corebio Technology Co., Ltd. and Smart Automation Technology Inc.

47 -

TABLE 7

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2023	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of March 31, 2023	Accumulated Repatriation of Investment Income as of March 31, 2023
					Outward	Inward
Fuzhou Fulfil Tech Co., Ltd. Fujian Khuan Hua Precise Mold Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Chongqing Fulfil Tech Co., Ltd. Gatetech (Suzhou) Technology Co., Ltd. Suzhou Leoho Electronics Co., Ltd.	Electronic parts processing and manufacturing. Trading and related import and export business Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds Electronic parts processing and manufacturing. Trading and related import and export business Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds Electronic parts processing and manufacturing. Trading and related import and export business Electronic parts processing and manufacturing. Trading and related import and export business Manufacturing and assembling of laptops uses precise bearing, hardware and related accessories The processing, manufacturing, related imports and exports of all electronic, plastic and hardware parts Aluminum and magnesium alloy die caster Precision hardware components manufacturing	$ 42,944 109,959 58,601 124,253 18,339 151,226 232,219 138,052 715,998 204,824	Invested through Syncmold Enterprise (Samoa) Corp. Invested through Syncmold Enterprise (Samoa) Corp. Invested through Syncmold Enterprise (Samoa) Corp. Invested through Forever Business Development Limited Invested through Canford International Limited Invested through Fullking Development Limited Invested through Full Glary Holding Limited Invested through Full Celebration Limited Invested through Gatech International Ltd. Invested through Lucky King Holdings Ltd.	$ 63,427 (US$ 2,083 thousand) 41,290 (US$ 1,356 thousand) - - - - 182,700 (US$ 6,000 thousand) - 739,935 (US$ 24,300 thousand) 136,355 (US$ 4,478 thousand)	$ - - - - - - - - - -	$ - - - - - - - - - -	$ 63,427 (US$ 2,083 thousand) 41,290 (US$ 1,356 thousand) - - - - 182,700 (US$ 6,000 thousand) - 739,935 (US$ 24,300 thousand) 136,355 (US$ 4,478 thousand)	$ (694) 2,923 (2,266) (2,550) (21,379) 25,786 (3,268) (27,646) (18,464) (1,661)	100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 74.05 70.00	$ (694) (Note 1) 2,923 (Note 2) (2,266) (Note 2) (2,550) (Note 2) (21,379) (Note 1) 25,786 (Note 1) (3,268) (Note 2) (27,646) (Note 2) (13,630) (Note 2) (1,163) (Note 2)	$ 956,837 243,416 146,054 258,677 1,364,052 1,130,494 250,031 106,337 602,634 300,112	$ 2,407,499 (US$ 79,064 thousand) - 118,694 (US$ 3,898 thousand) - 1,298,084 (US$ 42,630 thousand) 1,745,211 (US$ 57,314 thousand) - 551,876 (US$ 18,124 thousand) - -

(Continued)

48 -

(Concluded)

Accumulated Outward Remittance for Investment in Mainland China as of March 31, 2023	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by the Investment Commission, MOEA
$1,390,804 (US$45,675 thousand)	$2,358,139 (US$77,443 thousand)	$3,506,194

Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: Calculated based on the non-reviewed financial statements of the investee company and the Group’s shareholding ratio.

Note 3: The profit and loss of investments between reinvested companies, investments accounted for using the equity method, and the equity of investee companies were all eliminated during the preparation of the consolidated financial statements.

49 -

TABLE 8

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details		Payment Terms	% of Total Sales or Asset (Note 3)
				Financial Statement Account	Price
0	Syncmold Enterprise Corporation	Syncmold Enterprise (USA) Corp. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	1 1 1 1	Sale Other operating income- royalty income Other operating income- royalty income Other operating income- royalty income	$ 10,945 12,627 15,023 15,526	No significant difference with non-related parties Based on the contract between both parties Based on the contract between both parties Based on the contract between both parties	- - - -
1	Zhongshan Fulfil Tech. Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation	2 2	Sale Trade receivables from related parties	285,875 358,144	No significant difference with non-related parties No significant difference with non-related parties	3 3
2	Dongguan Kwan Huang Precision Mold Plastic Co., Ltd.	Syncmold Enterprise Vietnam Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	3 3 3 3 3	Trade receivables from related parties Sale Trade receivables from related parties Sale Sale	16,002 25,120 18,941 15,136 13,721	No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties	- - - - -
3	Fuzhou Fulfil Tech Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation	2 2	Sale Trade receivables from related parties	106,393 144,718	No significant difference with non-related parties No significant difference with non-related parties	1 1
4	Fuqing Fuqun Electronic Hardware Tech Co., Ltd.	Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	3 3 3 3 3	Sale Sale Trade receivables from related parties Sale Trade receivables from related parties	13,880 43,753 22,106 20,425 10,561	No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties	- - - - -
5	Grand Advance Inc.	Syncmold Enterprise Corporation Syncmold Enterprise (USA) Corp. Fullking Development Limited	2 3 3	Other receivables from related parties - financing Other receivables from related parties - financing Other receivables from related parties - financing	106,575 12,180 45,675	Based on the contract between both parties Based on the contract between both parties Based on the contract between both parties	1 - -
6	Suzhou Fulfil Electronics Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation	2 2	Sale Trade receivables from related parties	198,492 259,545	No significant difference with non-related parties No significant difference with non-related parties	2 2
7	Kunshan Fulfil Tech Co., Ltd.	Suzhou Fulfil Electronics Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	3 3	Sale Trade receivables from related parties	71,732 57,251	No significant difference with non-related parties No significant difference with non-related parties	1 1
8	Chongqing Fulfil Tech Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation	2 2	Sale Trade receivables from related parties	47,529 31,462	No significant difference with non-related parties No significant difference with non-related parties	- -
							(Continued)

50 -

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details		Payment Terms	% of Total Sales or Asset (Note 3)
				Financial Statement Account	Price
9	Syncmold Enterprise (Samoa) Corp.	Syncmold Enterprise Corporation Fujian Khuan Hua Precise Mold Co., Ltd. Fullking Development Limited Chongqing Fulfil Tech Co., Ltd.	2 3 3 3	Other receivables from related parties - financing Other receivables from related parties - dividend Other receivables from related parties - financing Other receivables from related parties - financing	$ 225,330 44,518 24,360 46,436	Based on the contract between both parties Based on the contract between both parties Based on the contract between both parties Based on the contract between both parties	2 - - -
10	Fujian Khuan Hua Precise Mold Co., Ltd.	Fuzhou Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	3 3	Sale Sale	10,880 11,258	No significant difference with non-related parties No significant difference with non-related parties	- -
11	Suzhou Leoho Electronics Co., Ltd.	Leohab Enterprise Co., Ltd.	3	Trade receivables from related parties	70,671	No significant difference with non-related parties	1

Note 1: 0 represents the parent company and the subsidiaries are numbered from 1.

Note 2: 1 represents transactions from the parent company to the subsidiaries, 2 represents transactions from the subsidiaries to the parent company, and 3 represents transactions between the subsidiaries.

Note 3: The monetary amount of the transaction is calculated based on percentage of total sales or assets. If the account is an asset or a liability, the ratio is calculated using the ending balance. If the account is in the income statement, the ratio is calculated using cumulative amount during that period.

Note 4: The disclosure standard of the table above was 10% of the specified account and reached to $10,000 thousand.

Note 5: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

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TABLE 9

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS MARCH 31, 2023

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Chen Chiu-Lang	8,708,211	7.03

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preference shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
52 -

AI assistant

SYNCMOLD — Interim / Quarterly Report 2023

51868_rns_2023-12-22_a49e4c6f-0300-4e75-8a9f-b45e42d7671a.pdf

Syncmold Enterprise Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION

d. Other material accounting policies

1) Retirement benefits

2) Taxation

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES, NET

March 31, 2023

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

a. Right-of-use assets

15. INTANGIBLE ASSETS

16. GOODWILL

17. BORROWINGS

b. Long-term borrowings

18. BONDS PAYABLE

19. OTHER PAYABLES

20. RETIREMENT BENEFIT PLANS

21. EQUITY

Ordinary shares

d. Special reserve

e. Non-controlling interests

22. NET PROFIT

Accrual rate

Amount

23. INCOME TAXES

a. Income tax recognized in profit or loss

b. Income tax assessments

24. EARNINGS PER SHARE

Net Profit for the Period

Shares

25. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

26. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

March 31, 2023

March 31, 2023

December 31, 2022

1) Market risk

a) Foreign currency risk

Sensitivity analysis

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Financing facilities

27. TRANSACTIONS WITH RELATED PARTIES

Related Party Name Related Party Category

c. Lease agreements

SYNCMOLD Interim / Quarterly Report 2023